Scania Interim Report, January–March 2014

Scania’s (STO:SCVA) (STO:SCVB) earnings for the first quarter amounted
to SEK 2,257 m. Both vehicle and service volume increased, which was
partly offset by weaker emerging markets currencies. Total order
bookings for trucks during the first quarter were higher than the
beginning of last year.

“Scania’s earnings for the first quarter amounted to SEK 2,257 m. Both
vehicle and service volume increased, which was partly offset by weaker
emerging markets currencies. Total order bookings for trucks during the
first quarter were higher than the beginning of last year. The negative
effect on demand in Europe after pre-buys of Euro 5 vehicles was less
than expected and order bookings increased. The improved economic
situation in Europe together with the replacement need means that the
underlying trend in demand is positive. Scania has strengthened its
position in the European market through increased market share and a
leading Euro 6 range, which is confirmed by Euro 6 tests in the trade
press. Order bookings in Latin America remained in line with the
previous two quarters. In Asia, order bookings improved and in Russia,
order bookings increased significantly. Order bookings for buses and
coaches rose in Europe, while they fell in Latin America and Eurasia. In
Engines, order bookings were somewhat better than in the same period of
2013 and Scania has initiated collaboration on engine deliveries with
another major OEM. Scania is continuing its long-term efforts to boost
market share in Services and revenue increased by 7 percent in local
currencies during the first quarter. Financial Services showed a strong
performance and customer payment capacity is good. The trend in demand
in early 2014 indicates a continued high level of vehicle and service
volume. There are also good growth opportunities in the longer term and
the expansion of annual technical production capacity towards 120,000
vehicles is continuing. To strengthen competitiveness, the level of
activity related to development projects remains high, at the same time
as Scania is expanding its sales and service capacity in emerging
markets.”

Scania is one of the world’s leading manufacturers of trucks and buses
for heavy transport applications, and of industrial and marine engines.
Service-related products account for a growing proportion of the
company’s operations, assuring Scania customers of cost-effective
transport solutions and maximum uptime Scania also offers financial
services. Employing some 41,000 people, the company operates in about
100 countries. Research and development activities are concentrated in
Sweden, while production takes place in Europe and South America, with
facilities for global interchange of both components and complete
vehicles. In 2013, net sales totalled SEK 86.8 billion and net income
amounted to SEK 6.2 billion. Scania press releases are available on www.scania.com (http://www.scania.com/se)